Sri Lanka

Restricted Confirmed Verified August 25, 2026

Crypto is not legal tender and the central bank has not licensed exchanges, ICOs, mining or custody businesses; card and foreign-exchange restrictions may apply.

Central Bank of Sri Lanka

Total Laws (incl. applicable EU-wide)

Effective Laws

At a Glance

Is holding crypto allowed?

Restricted

Is crypto trading allowed?

Restricted

Is P2P trading allowed?

Restricted

Are crypto payments allowed?

Prohibited

Is crypto legal tender?

Is mining allowed?

Unclear

Is staking allowed?

Restricted

Is DeFi participation allowed?

Restricted

Are stablecoins allowed or regulated?

Restricted

Activity Status Matrix

Activity	Status	Details
Holding Crypto	Restricted	Is holding crypto allowed?
Crypto Trading	Restricted	Is crypto trading allowed?
P2P Trading	Restricted	Is P2P trading allowed?
Crypto Payments	Prohibited	Are crypto payments allowed?
Legal Tender	No	Is crypto legal tender?
Mining	Unclear	Is mining allowed?
Staking	Restricted	Is staking allowed?
DeFi	Restricted	Is DeFi participation allowed?
Stablecoins	Restricted	Are stablecoins allowed or regulated?
NFTs	Unclear	Are NFTs allowed or regulated?
Token Launches	Restricted	Are token launches allowed?
Crypto Advertising	Restricted	Is crypto advertising allowed?
Banking Access	Prohibited	Do crypto businesses have banking access?

Regulation Overview

Crypto is not legal tender and the central bank has not licensed exchanges, ICOs, mining or custody businesses; card and foreign-exchange restrictions may apply. The controlling reference is Central-bank virtual-currency warning (Official notice). Central Bank of Sri Lanka is the principal authority identified for the national or regional perimeter. Crypto is not sovereign legal tender; separate securities, payments, foreign-exchange, consumer, sanctions and tax rules may apply according to the token and activity.

Tax Information

Tax treatment in Sri Lanka depends on the taxpayer, source of income and activity. Disposals, rewards, mining, staking, employment receipts and business use may be treated differently; confirm current rates, valuation rules, reporting and indirect-tax treatment with Inland Revenue Department Sri Lanka.

Individual Tax Treatment

Individuals should retain acquisition cost, disposal value, wallet and exchange histories, transaction hashes and local-currency valuations. Check income, capital, wealth, gift, inheritance and foreign-asset reporting rules with Inland Revenue Department Sri Lanka.

Business Tax Treatment

Businesses should account for crypto revenue, gains, losses, custody liabilities, payroll and expenses under ordinary company and accounting law. Tax registration, invoices, withholding, VAT or sales tax and cross-border reporting remain separate obligations.

Inland Revenue Department Sri Lanka

Business & Licensing

The licensing perimeter is limited, transitional or activity-specific. Obtain written confirmation from Central Bank of Sri Lanka before offering exchange, custody, transfer, payment, token issuance or investment services.

AML / KYC Requirements

Covered firms must apply customer and beneficial-owner identification, risk classification, sanctions screening, transaction monitoring, recordkeeping and suspicious-transaction reporting under national AML/CFT rules.